The Ukraine War has exacerbated the global pressures of inflation on items from food to energy, with huge consequences for the political economies of the G7 and European countries. Furthermore, sanctions against the Russian Federation are strongly supported by the general public in these countries due to their shock and anger regarding Russia’s invasion of Ukraine. In Japan, for example, an opinion poll by Kyodo News in April showed that 73.7% were in favour of tough economic sanctions, even if Japan’s own economy is affected. There is widespread concern that Russia’s war against Ukraine might spur on the People’s Republic of China to attempt to seize Taiwan by force.

Japan has a unique experience of inflation. From the early 1990s to 2021, Japan’s rate of inflation remained well below 2% and was often negative (deflation), except for tax hikes. Now, however, the price stability target of 2% – set by the Bank of Japan in 2013 – has finally been reached after decades of very little rise.

In this session, the speaker will discuss the following topics:

1. Japan’s decades-long issues related to “deflation”: are they going to be “solved” by inflation?
2. The risks and opportunities arising from this round of inflation, such as climate action, wage hikes, the pension system

Following this, he will give an overview of recent Chatham House events related to the Ukraine War, and then discuss the role of thinktanks in general.

About the contributors

Yasumune Kano is a Visiting Fellow in the Global Economy and Finance Programme at Chatham House, a role he took up in October 2021. Since joining the Japanese Ministry of Finance in 2010, he has worked on a wide range of economic policy and research, including trade negotiations with the WTO and TPP, earthquake insurance, deposit insurance, and much more. He has also worked as a financial regulator at the Bank of Japan. External link: https://www.chathamhouse.org/about-us/our-people/yasumune-kano